You have two main ways to harness solar energy. One is to install solar panels on your property and the other is to join a community solar project.
If you choose to install solar at your home or business, you’ll typically set up rooftop solar panels to generate electricity from the space above you. However, if your situation isn’t suitable for rooftop solar, community solar offers an alternative. It allows you to access solar benefits by subscribing to or owning a portion of a larger solar project in your vicinity.
When comparing rooftop and community solar options, consider key factors like what you’re acquiring, payment methods, benefits you’ll receive, environmental advantages, and what happens when you relocate or opt-out.
Community Vs. Rooftop Solar
When you purchase a rooftop solar panel system, the benefits are clear: you’re acquiring physical solar panels and equipment that will be installed on your property. The electricity generated by these panels directly powers your home after going through an inverter.
Understanding what you gain from participating in a community solar project can be a bit more complex, but it doesn’t have to be confusing.
When you invest in a community solar project, you’re essentially paying for the electricity generated by the solar panels within that community solar farm. This is similar to buying solar power from your rooftop system, with the key difference being that solar energy is generated off-site. Think of it as the remote working version of solar energy!
Payment Options
To understand your payment options for rooftop and community solar, there are two main questions to consider: ownership and payment method.
When it comes to rooftop solar, you have the choice of owning or leasing your system. If you own the solar panel system, you possess all the physical equipment (like solar panels and inverters), and you’ll experience the greatest financial and environmental benefits over the system’s lifespan of 25 years or more.
You can choose to buy the system outright or through a solar loan, paying on a monthly basis, similar to how you make car payments or pay a mortgage.
Meanwhile, opting for a lease means a third party owns the solar panel system on your roof, and you simply pay for the electricity generated by the panels on a monthly basis. This payment structure is quite comparable to community solar.
In the case of community solar projects, most operate on a subscription model. You make monthly payments for the electricity generated by the community solar project.
The appeal of this subscription lies in the fact that the solar power you buy from the community solar project is priced lower than what your utility charges. Over a year, the electricity from community solar could cost you about 10 percent less than what your utility bills you.
Environmental Benefits
Both rooftop and community solar options have the common goal of reducing reliance on fossil fuels and lowering carbon emissions, thus promoting better air quality and a cleaner environment.
An important aspect to weigh when comparing these options is the utilization of space. Rooftop solar effectively utilizes otherwise unoccupied areas on your roof, maximizing the use of available square footage.
On the other hand, community solar demands considerably more land and space compared to rooftop installations. It’s advisable to inquire about the location of the community solar installation – whether it’s on previously unusable land, such as a former landfill, or if it occupies land that could serve other purposes.
